Are you part of the “Sharing Economy”

Are you part of the “Sharing Economy”

The IRS has a new category of potential audit victims: the sharing economy. This “new” economy, at least according to the IRS, includes “websites and mobile apps such as Airbnb, Uber, Lyft, TaskRabbit and Handy where people can share their homes, hail rides in other people’s cars, offer to perform chores, or get hired to do repairs. Those who do the work are considered entrepreneurs who use the apps to make their services available. However, they generally don’t receive 1099 forms or have taxes withheld from their pay, so they are responsible for taking care of their own taxes.” Here is a starting point (from the IRS) for those who may make some or all of their income in what is often a cash-intensive business venture. Please note that business owners, including those in the so-called sharing economy, are also permitted to deduct all ordinary, necessary and reasonable business expenses from any gross income that is earned. These expenses are not discussed in this IRS article.